University of Washington
Organizational Effectiveness and Lean
NCCI Conference
About the University of Washington
About
the
University
of
Washington
y Founded in November 1861
y 47,238 Students (undergraduate, graduate,
professional)
y $1.4 billion Research Awards (largest federally
funded public research institution in America)
y Campuses in Seattle Tacoma and Bothell
y Campuses in Seattle, Tacoma and Bothell
y 17 major schools & colleges
y UW Medicine (School of Medicine University
y UW Medicine (School of Medicine, University
of Washington Medical Center, Harborview
Medical Center, Northwest Hospital, and UW
Physicians Neighborhood Clinics) Physicians Neighborhood Clinics)
We Must Change:
We
Must
Change:
Unprecedented
decline
in
state
funding
y The UW has lost 30% of state funding (more reduction to come)
y Total per student funding has been cut to 1990 levels
UW’s Continuing Changes to Budget Mix
Unprecedented
Impact
to
the
UW
y In making budget decisions UW sought to preserve educational
y In making budget decisions, UW sought to preserve educational
excellence and maintain student access.
y We made careful but difficult decisions:
y We made careful but difficult decisions:
Over 800 positions eliminated (more coming)
16% cut in administration (more coming)
12% cut in academic programs (more coming)
y As a result:
It takes longer and costs more to graduate
The need for financial aid has increased
We are admitting more out of state students
We
are
Steadfast
in
Our
Mission
and
Values
y We value education guaranteeing a better future for our kids and
y We value education, guaranteeing a better future for our kids and
for our state.
y We value discovery and innovation, finding the best ideas and
timely solutions to our biggest challenges.
y We all value service and partnership, working together to build
stronger vibrant communities and a better world stronger, vibrant communities and a better world.
y We are committed. Together, we create our shared future. We are
UW’s Future
Key
Culture
Facts
y Interim leadership in 2010 2011: President, Provost
y Very involved Faculty Senate
y Inclusive—everyone expects a voice
y Special one size won’t fit all
y Special—one size won’t fit all
y Independent—don’t tell me what to do!
y Slow and hard to make decisions—agreementsg are mostlyy made
collaboratively, not hierarchically
y Sharing—hard to keep things under wraps
P d UW i b t t ll th d t h
y Proud—UW is best, not all see the need to change
y Relationships are key—political frame
Your Institution
Your
Institution
y Introduce yourself to 3–4 others nearbyIntroduce yourself to 3 4 others nearby
y Do you have an effectiveness initiative underway?
H i i d?
y How is it structured?
y What are its goals?
Our Focus and Plan 2010
‐
2011
Two Years to Two Decades
f f
Our
Focus
and
Plan
2010
‐
2011
Strategic priorities for the future
What are our
priorities in
the coming Maintain
Stay true to our
mission:
Provide solutions to
society’s most
decades? Maintainquality •A public university
•Learning—Discovery— Engagement
pressing issues (as determined by 2d
focus group results)
Sustainable Academic Business Plan Align activities with our strategic priorities
Create a new business plan for the UW
What are our
near‐term Create a new business plan for the UW
goals?
Decrease Costs Invest in People Invest in Infrastructure Increase
Revenues
2011 Priority
Initiatives OrganizationalEffectiveness
Program
What
is
the
Sustainable
Academic
Business
Plan?
Plan for how to emerge from the next two years better than we are now Plan for how to emerge from the next two years better than we are now,
positioned for the next twenty
y Become more: Nimble Collaborative Flexible Sustainable Increase revenues Decrease costs
Invest in people Engage everyone
What is the UW
What
is
the
UW
Organizational
Effectiveness
Initiative?
Plan for how to improve work processes in the next two years, in order to
position us for the next twenty. We want to become even better!
i i l Principles:
Rapid ‐‐ Transparent ‐‐ Data Driven ‐‐ Accountable ‐‐ Holistic
Add value to the UW
Achieve operational excellence Engage everyone
OEI Structure/Oversight
What Are We Doing?
What
Are
We
Doing?
Telling our story
y Focused on successes, individual engagement and stories, metrics; will
be collecting UW wide process improvements and results be collecting UW wide process improvements and results Building Capacity
y Provide tools and training for departments to learn how to do their own
i t k ti
T
f R
t t D t
Types
of
Requests
to
Date
y Strategic Planning
y Moving to Shared Services Facilitation
y UW‐wide Initiative Facilitation
P M i
y Process Mapping
y Process Improvement Planning/Facilitation
y Project Management (hiring consultants)
y Project Management (hiring consultants)
y Metrics Consulting
y Training (targeted to a unit and for senior leadership)Training (targeted to a unit and for senior leadership)
y Spans and Layers Analysis
y Assessments (customer, employee, needs)
Administrative Process Improvements –
Administrative
Process
Improvements
Survey
Conducted
January
2011
y 82 different groups responded
y 141 separate process
improvement initiatives
y 77% of reported process
improvements are seeing
reduced costs as a result
improvement initiatives
identified
y Five specific types of
improvements were asked for:
y 72% of improvements with
reduced costs also reported
enhanced satisfaction improvements were asked for:
Reduced costs
Increased quality
enhanced satisfaction.
y Respondents were able to
choose multiple improvements
q y
Reduced waste
Improved turn around time
y Respondents could also add
other improvements not already
listed
Cross Unit Administrative Initiatives (examples)
Cross
Unit
Administrative
Initiatives
(examples)
y Procurement Express – Establish university‐wide contracts resulting in lower cost and better
service, leverage existing technology to improve processing efficiencies, and transaction outreach
efforts, to focus on assisting units to maximize contract and administrative process efficiencies
y Smart Grid – Demonstration project, part of a national initiative, that will create a “smart micro‐
grid” for non‐utility owned electricity grid, to monitor energy consumption for the purpose of
building “smart” energy management and resource allocation
y Direct Admissions – Leverage existing program to admit incoming freshmen directly into their
preferred major/school, to consider implementing university‐wide
y DIMS: Document Imaging Management System – Pilot project to implement a flexible enterprise
d t t t th t t d t d l t i d t document management system that captures and stores paper and electronic documents,
performs workflow and integrates with existing and future UW enterprise systems, with the goal of
providing this system campus‐wide
y GUPPEE (GovernmentGUPPEE (Government University‐University Project Partnership for Efficiency and Effectiveness) Project Partnership for Efficiency and Effectiveness)– ThreeThree
year demonstration project in which UW and Washington State University are pursing a rigorous
development and implementation project to improve administration and management practices to
enhance the efficiency and effectiveness of university‐wide operations
y Humanities Shared Services Initiative – Pilot project designed to provide centralized transactional
administrative services to 13 departments within the Humanities division of the College of Arts and
Lean
Approach
at
UW
y UW Medical Center
y Harborview Medical Center
y Finance & Facilities
y Ad hoc use
y The following slides describe Lean in Finance & Facilities
What Is Lean?
What
Is
Lean?
Lean is “a systematic approach to identifying and eliminating
waste...” which includes—
waste... which includes
identify current state
envision future vision
rapid process improvements
customer involvement
Lean engages staff—
to identify and solve problems
to identify and solve problems
Lean encourages leaders—
to trust and respect staff to do so
Why Lean?
1. Lean helps Finance & Facilities (F2) leaders and staff
to become more:
Why
Lean?
• customer sensitive
• nimble
• efficient
2. Lean thinking and actions help us to:
• build a common culture those closest to the
• build a common culture ‐ those closest to the
work constantly learning how to make that
work better
• improve our management processes of
observation, experimentation and speed
What Is Unique About Lean?
• “Wing‐to‐wing” improvements involve
F2 ff d
What
Is
Unique
About
Lean?
customers, F2 staff, process partners and
suppliers
• Faster rate of change
• Customers define what’s valuable
• Aggressive improvement goals (often 50%)
How
We
Oversee
Lean
in
F2
32 Active Teams Coached by 3 75 FTE and volunteer facilitators (total of 1 550 32 Active Teams Coached by 3.75 FTE and volunteer facilitators (total of 1,550
F2 employees; ~370 involved in Lean so far)
Program Management Theme: IRONMAN TRIATHLON
h k h h h f d ( h “ ”)
Coaches work with teams through Transition from 3‐day Event (the “Swim”), to
30‐day, 60‐day and 90‐day kaizen “step‐backs” (the “Cycle”), to culture of Daily
Identifying The 8 Key Wastes
Identifying The 8 Key Wastes
Overproduction Waiting Transport Processing
Excess inventory Movement Complexity Underutilized people
Reducing Processes To Core Value
Reducing
Processes
To
Core
Value
EXCESSIVE MOTION DEFECTS
WASTED TIME AND ACTIVITY
O P E R A T I O N A L L E A D T I M E
EXCESSIVE MOTION
(WALKING TO NEXT TASK, ETC.)
DEFECTS
(IDENTIFYING, HANDLING, FIXING)
CORE PROCESS VALUE O P E R A T I O N A L L E A D T I M E TRANSPORTATION WAITING (OFTEN RESULT OF UNNEEDED
PROCESSING TIME UNBALANCED(OFTEN RESULT TASKS) OF
PROCESSING TIME
What Is A Value Stream Map?
What
Is
A
Value
Stream
Map?
y Visual map of work flow:Visual map of work flow:
y from beginning to end, from the customer perspective
(wing‐to‐wing)
y produces an outcome or product (services, materials,
information, etc.)
y A t l t
y A tool to:
y Document the current process
y Point to problems
y Point to problems
Value Stream Map Alterations Process
Value Stream Mapping Exercise
Value
Stream
Mapping
Exercise
y Identify the main steps you complete to get
accomplish one of the processes
accomplish one of the processes.
y Place the notes in order from start to finish.
y List how much time is needed for each step
y Process Time
y Process Time
y Wait Time
y Touch Time
Time Measures
Time
Measures
y Touch Time – (T/T): The actual time spent doing
h k i hi
the work within a process step
y Wait Time (W/T): The time between process
t
steps
y Process Time (P/T): The time to complete a
process step
process step
y Total Lead Time (TLT): The time spent doing the
entire value stream process including all entire value stream process, including all
Value
Stream
Mapping
pp g
Exercise
y Calculate total time it takes to complete the
process
p
y Calculate total touch time
y Calculate total wait time
y Look at the map and identify any issues that leap
out
y What do you see?
y What do you see?
y What does the process do well?
y Where are the wastes?
y Can you identify some “Lean” opportunities?
What Is A Visual Control?
What
Is
A
Visual
Control?
Visual representation of process (in addition to the
Visual representation of process (in addition to the
value stream map) in a highly visible location that:
• Makes problems visible
• Focuses on improving Value‐Added Work Flow
• Communicates at a glance how work should be done and
h h i i d i i f h d d
whether it is deviating from the standard
• Facilitates accountability of the team to the process
• Allows for frequent communication and sharing
Visual Controls
Visual Controls
Wh
I J
D I ?
What
Is
Just
Do
It?
Just Do It…
Improvements that are quick to implement, that you
have direct control over, the impact is clearly
understood and agreed upon and it will be measured
understood and agreed upon and it will be measured.
Examples: Examples:
y Make revisions to one of your reports
y Create contract definition sheet – Alterations Event
y Create contract definition sheet Alterations Event
y Reduce Time in Meetings – Strategy Management
Lean: Early Kaizen Events in Grant & Contract Accounting: Lean: Early Kaizen Events in Grant & Contract Accounting:
Budget Closings
Content: 3‐day event. 6‐ 12‐person teams, including customers; process
V l S M i C V i K i f l i
partners. Value Stream Mapping; Customer Voice; Kaizen formulation
1. Eliminate backlog of GCA closing budgets
April Backlog of 5,478 reduced to less than 300 2. Improve closing process and avoid future backlog 2. Improve closing process and avoid future backlog
CASE STUDY: Early Success Leads GCA to Initiate Org.‐wide Lean Rollout
“Case for Change”: Growth in Research Volume
300% 350% % change
((1990 base year)1990 base year)
308% increase in Direct Expenditures $ amount since 1990 200% 250% 200% increase in 255% increase in Awards $ amount since 1990 amount since 1990 100% 150% number of Budgets since 1990 0% 50% 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 20% increase in number of FTE since 1990 -50% 199 0 199 1 199 2 199 3 199 4 199 5 199 6 199 7 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0
•
Budget set up: 24 hours
Budget
set
up:
24
hours
•
Invoicing:
by
due
date
i
b d
d
•
Reporting:
by
due
date
•
Closing:
within
120
days
of
expiration
•
Prompt
response
to
all
customer
inquiries
•
Standard approaches to all processes
Standard
approaches
to
all
processes
Desire to create a space dedicated to accomplishing
Desire to create a space dedicated to accomplishing
one goal.
This area to have:
• No distractions
• Checklists with clear stepsChecklists with clear steps
• Accountability
• Immediate feedbackImmediate feedback
` Pending cash & journal ` Visual Cues g j voucher processing ` Problems to Resolve ` Problems to Resolve
•
Improvement
p
approach
pp
– Build on initial Lean improvements
– “Stream” all processes
– Provide consistent campus interface
– Level work
St d di
– Standardize processes
– Eliminate waste and wait time
– Use visuals in all streams
– Use visuals in all streams
– Develop daily goals tied to demand
Visual Management in GCA
Results: Budget Closings
Results:
Budget
Closings
6000
Budgets Expired with End Date > 120 days
518 4252 3684 8 3457 4000 5000 ts Not Closed 3734 3089 595 676 691 1578 1444 1637 2387 2255 2176 2275 86 3072 2623 3282 2904 2972 3457 3172 2917 2828 2424 2023 2000 3000 m ber o f Budge t 3089 2396 1932 1704 1460 1335 1070 917 741 553 438 311 1986 1712 0 1000
May‐10 Jun‐10 Jul‐10 Aug‐10 Sep‐10 Oct‐10 Nov‐10 Dec‐10 Jan‐11 Feb‐11 Mar‐11 Apr‐11 May‐11
Nu
m
R
l
T
l D ll
A
i C h S
Result:
Total
Dollar
Amount
in
Cash
Suspense
Milli $10 9 $12.4 $12.6 $13.0 $14.2 $15 Millions 6.9 5.6 6.8 7.2 7.7 4.4 3.2 $7.3 $6.9 $10.9 $9.7 $9.7 $6.8 $6 2 $6 2 $10 4 7 4 1 1.2 0.9 1.1 2.1 2.8 2.4 3.1 2.1 2.3 1.7 1.5 1.4 1.0 3.8 3.8 2.9 2.7 2.6 1.5 $6.2 $6.2 $4.9 $5 2.3 2.2 2.9 4.7 3.0 3.5 3.3 3.1 4.1 2.2 2.0 2.2 2.4 $0
May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11
h
l
f
What
GCA
is
learning
from
Lean
• Productivity trending up in all streamsProductivity trending up in all streams
• Backlog trending down in all streams
• Where we have standardized it’s having an impact
• Where we have standardized, it s having an impact
• Staff and leaders are engaging in the change
• Beginning to hear positive feedback from campus
• Beginning to hear positive feedback from campus
What Is 5S?
What
Is
5S?
5S focuses on creating an efficient workflow by reducing
waste through the placement and movement of
waste through the placement and movement of
Lean Activityy : Februaryy 2010
Facilities Services – 5S (Entire staff of Administration Building)
Customer Impact/Benefit to Customer:
Workspace Focus
Before 5S After 5S
Workspace Focus
• Facilities Services’ 5S projects are designed to improve customer service by identifying and
eliminating wasted time and space to allow for increased accuracy and productivity.
Before 5S After 5S 5S Lean concept: • SortSort • Straighten • Shine • Standardize • Sustain
OEI 2010 2011 Accomplishments
OEI S
ifi A
li h
t
OEI
Specific
Accomplishments
Service Number of Hours (contact time, not design or
development time)
Training – unit specific 6
Training – OEI leadership offerings 18
Intake Meetings 60
Consulting Hours 185
Activities Number of Products
Strategy Maps 4
Process Maps 4
Retreats/Workshops 13
OEI Website 12 pages, 644 visitors, 2000 visits, 5400 pages viewed
Reporting Structure Maps 9
Unit Improvements compilation 1
Cross Unit Improvementsp compilationp 1
I
t t OEI i 2012
Impact
to
OEI
in
2012
y Reporting to VP Research, who is managing 2y2d for Provost
y Focused on Central Administration: particularly student
services and research processes
y Ruth dedicated to a School’s specificp improvementp needs for
next year
y PEI for Administrative Areas: set of metrics will be required for
next budget review
y Benchmark
y Customer survey
y Employeep y surveyy
y Cost of service
OEI L
L
d
OEI
Lessons
Learned
y Communicate, communicate y Use jargon (e.g. Lean) with care
y Be transparent as possible
y Get the right people
engaged supportive build
y Provide Central support (free services) with talented staff
y Collaborate with other
ff f d
engaged, supportive; build
allies
y Make it easy (simple tools)
university staff for increased capability
y Creating metrics is hard and is new for many
y Proactively reach out
y Address any criticism directly
and by listening
new for many
y Identifying a few UW wide initiatives that we can drive would be helpful to build
and by listening
y Understand that some won’t
participate and think they
d i i ll l d
would be helpful to build credibility
y Balance doing hard things with support
Organizational Effectiveness Initiative
Organizational
Effectiveness
Initiative
Contact
Information
y Ruth Johnston, Ph.D., Special Assistant to the Provost and
Associate Vice President in Finance & Facilities
thj@ d 206 685 8938
ruthj@uw.edu, 206 – 685 – 8938
y Laurin Gaudinier, Metrics Analyst & Reporting Specialist laurinmg@uw.edu, 206 – 616 – 7174
laurinmg@uw.edu, 206 616 7174
y Kerry Kuenzi, Project Manager
kkuenzi@uw.edu, 206 – 616 – 0201
y Sherry Steinaway, OD & Process Improvement Specialist sherry@uw.edu, 206 – 685 – 6071
website https //depts washington edu/oei/
website: https://depts.washington.edu/oei/
